Shares in Hodges Rise 160 Percent After Buying from Rio

Hodges Resources has acquired a 60 percent right in for a New Zealand iron sands from from Rio Tinto for roughly $4.5 million, sending share prices up 163 percent closing at $2.90.

According to the West Australian:

The company will pay Rio Tinto a non-refundable deposit of $NZ100,000 ($89,280) on execution of the agreement and payment of $NZ5 million ($4.55 million) when production starts.

It will also pay Rio a royalty payment on commercial production of $US1 per tonne for the first 10 million tonnes and 50 cents per tonne for the next 90Mt produced.

No royalty after 100Mt of commercial production.

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